Peso retreats to 42-to-dollar range
AFP PHOTO/ROMEO GACAD
MANILA, Philippines—The peso fell back to the 42-to-a-dollar territory on the first trading day of the week as renewed concerns over a potential default by Greece and speculations of a further slowdown of China increased risk aversion.
The local currency closed at 42.06 against the US dollar on Monday, down by 20 centavos from Friday’s finish of 41.86:$1.
Intraday high hit 41.96:$1, while intraday low settled at 42.1:$1. Volume of trade amounted to $995.1 million from $860.53 million previously.
The depreciation of the peso came as fears rose once more that Greece would default on its maturing debts. There are concerns the debt-ridden country may not meet some of the requirements that the International Monetary Fund has imposed to grant a bailout package.
Moreover, there are concerns China, which slowed down to a growth of 7.6 percent in the second quarter from 8.1 percent in the first quarter, may decelerate further in the next quarter.
Traders said global economic concerns dampened risk appetite, even for emerging market securities like peso-denominated stocks and bonds.
